(22 points) There are two (and only two) firms in the market for carrots: Grimhouse (G)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(22 points) There are two (and only two) firms in the market for carrots: Grimhouse (“G”) and Boltway ("B"). Due to superior farmland and technology, G has a cost advantage over B. Specifically, CG(qG) = 100 + 2qG and CB(9B) = 140 +7qß. The market demand curve is given by Q = 120 – 2P, where Q = qG+qв and P is the price of carrots. (a) Find the Cournot Equilibrium price, as well as the quantities and profits for each firm, and the consumer surplus. (b) Calculate the HHI for this market. (c) Is the HHI in this market higher or lower than the HHI of a duopoly in which the firms have equal market share? (d) Suppose instead that both firms have C(q) Cournot equilibrium: i. price? ii. consumer surplus? iii. individual firm profits? iv. industry profits? Explain how these changes fit together. = 120+4.5q. How would this change the (22 points) There are two (and only two) firms in the market for carrots: Grimhouse (“G”) and Boltway ("B"). Due to superior farmland and technology, G has a cost advantage over B. Specifically, CG(qG) = 100 + 2qG and CB(9B) = 140 +7qß. The market demand curve is given by Q = 120 – 2P, where Q = qG+qв and P is the price of carrots. (a) Find the Cournot Equilibrium price, as well as the quantities and profits for each firm, and the consumer surplus. (b) Calculate the HHI for this market. (c) Is the HHI in this market higher or lower than the HHI of a duopoly in which the firms have equal market share? (d) Suppose instead that both firms have C(q) Cournot equilibrium: i. price? ii. consumer surplus? iii. individual firm profits? iv. industry profits? Explain how these changes fit together. = 120+4.5q. How would this change the
Expert Answer:
Related Book For
Essentials of Strategic Management
ISBN: 978-1260092271
1st edition
Authors: Martyn R Pitt, Dimitrios Koufopoulos
Posted Date:
Students also viewed these finance questions
-
Question II (50%): for soils D, E, F, G using the data given below. Soil D Percent finer by weight E F G 8 90 80 70 10 Determine the USCS group symbol and group name 0.001 FINES 0.01 Soil Sample...
-
The following stocks make up the Dow Jones Industrial Average (Barrons, July 30, 2012). Suppose you would like to select a sample of six of these companies to conduct an in-depth study of management...
-
A father pushes horizontally on his daughters sled to move it up a snowy incline, as illustrated in Fig. 5.27b. If the sled moves up the hill with a constant velocity, how much work is done by the...
-
"A 10% uniaxial tensile strain has been applied to a mouse tail tendon fascicle. Using Davis and De Vita's nonlinear viscoelastic model, plot the change in axial stress over time. Given: c1=20.3 MPa;...
-
Jennifer received an SAT score that was equal to the first quartile and the 35th percentile. Decide whether the statement make sense or not? Explain clearly.
-
If a n is convergent and b n is divergent, show that the series (a n + b n ) is divergent.
-
\(4+(8+\sqrt{7})=(4+8)+\sqrt{7}\) Identify the property of real numbers that is being illustrated.
-
Cepeda Corporation has the following cost records for June 2012 Instructions (a) Prepare a cost of goods manufactured schedule for June 2012. (b) Prepare an income statement through gross profit for...
-
Werner Company had $1,300 of store supplies at the beginning of the current year. During this year, Werner purchased $6,250 worth of store supplies. On December 31, $1,125 worth of store supplies...
-
You are employed by FishWrap Ltd., a local newspaper distribution company, and are attempting to determine the average level of customer satisfaction with the newspapers delivery service. All...
-
5. For the current year, the Albuquerque Partnership had book income of $100,000, which included the following: Long-term capital gain $ 7,000 Section 1231 loss (3,000 ) Dividend income 200 Interest...
-
2. Solve the recurrence relations for D(n), the delay, and G(n), D(n) 3(1+ logn) D(1)=3 D(2n) = D(n) +3 G(n) = 3nlog2n+15n-6 G(1)=9 G(2n) 2G(n) + 6n+6
-
Steve King and Chelsy Bernard formed a partnership, dividing income as follows: 1. Annual salary allowance to King of $126,000. 2. Interest of 5% on each partner's capital balance on January 1. 3....
-
Evaluate the limit: sin(4x) lim x10 X Compute the derivative of the function: f(x) = e* sin(3x) Determine the critical points and classify them for the function: g(x)=x-10x + 15x
-
1. What recent patent law changed the way patents are filed? Why was this done? 2. What are the problems with the current U.S.A. patent laws that relate to technology? 3. List 3 advantages that...
-
Question 3 The following ACF plots were produced for raw data of monthly sales of two different variables, A and B. a) Explain which variable (A or B) is likely to be easier to forecast. (2 marks)....
-
please help me in the market segment, how D' Anconia' use the practitioner approaches to estimate the required return on asset? and estimate the required return. LocalEquity B x 1 - Hist + (Debtp x...
-
A copper wire (density = 8.96 g/cm 3 ) has a diameter of 0.25 mm. If a sample of this copper wire has a mass of 22 g, how long is the wire?
-
Is The Dore Programme right to assert that statistics about the efficacy of its exercise-based treatments are inappropriate. How far do you agree? What would useful statistical measures be?
-
What reservations might you have about the design-plus model of strategic management?
-
Scardino has persisted in office much longer than did Carly Fiorina, the high profile, former chief executive of Hewlett-Packard. Explore the reasons for this difference. Do they affect your...
-
Consider the following three-player game in strategic form. Each player has two strategies: Player I has the strategies \(T\) and \(B\) (the top and bottom row), player II has the strategies \(l\)...
-
Consider the following \(3 \times 3\) game. (a) Identify all pairs of strategies where one strategy weakly dominates the other. (b) Assume you are allowed to remove a weakly dominated strategy of...
-
Consider the following game tree. As always, the top payoffs at a leaf are for player I and bottom payoffs for player II. (a) What is the number of strategies of player I and of player II? (b) How...
Study smarter with the SolutionInn App